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Since 1998 the courts have had the power, on an application to vary spousal maintenance, to order capitalisation by terminating the periodical payments order and making a capital award to meet income needs. In his innovative judgment in
AZ v FM [2021] EWFC 2, Mostyn J interpreted s31 Matrimonial Causes Act 1973 as also permitting capitalisation of child maintenance on a variation application, a power the court was not previously considered to have. However, whilst this is a significant development, it is clear that – for now at least – capitalisation of child maintenance will be ordered in only very limited circumstances.
What are the relevant provisions of the Matrimonial Causes Act 1973?